Today’s real estate word of the day is bridge loan. So what we’re going to do is define the word today and we’re going to use it in a sentence and then we’ll talk about it for just a moment. So let’s go with bridge loan. Bridge loans are obtained by those who have not yet sold their previous property, but must or want to close on the purchase property. The bridge loan becomes a source of their funds for the down payment. One. One reason for the fall. OK, so anyways, so they’re commenting more.
So a bridge loan allows you to buy your home, your new home before you sell this other one. So that’s the concept there. And to use it in a sentence, bridge loans could be a great way to help you buy a property before you sell your existing one. OK, so that’s using in a sentence, and it is a loan product that, depending on the market is popular or becomes the less popular, you probably would need to be working with a lender that really cares to be able to pull this off.
And what you have to do is you’ll have some certain terms that you’ll have to abide by. But bridge loans could be good to make it where you as the buyer are in a little bit more control. You’ll probably have to have better financial wherewithal, a better credit score. They’ll have to be that top tier borrower to be able to utilize this, but probably have to have equity. Right. But these are all things that you could totally do with a bridge loan.